In the term "real GDP," what does "GDP" stand for and what does it measure? What does "real" indicate?
What will be an ideal response?
GDP stands for gross domestic product and measures the value of the total production of final goods and services. "Real" indicates that the goods and services produced are valued using the prices of the base year, not the current year, and therefore are adjusted for inflation.
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Refer to the scenario above. What is the difference between the future value of John's deposit and Wendy's deposit after one year?
A) $10 B) $40 C) $60 D) $100
Suppose the manager of a store wants to know whether the product of the store across the street is a substitute for her product. In other words, she would need to know if the _____ for the products is positive
a. cross-price elasticity of demand b. price elasticity of demand c. income elasticity of demand d. price elasticity of supply e. cross-price elasticity of supply